a principle to always remember…you’re only as strong as your weakest link!

May 27th, 2008

Adam Osborne was a pioneer in the computer book industry.  He founded Osborne Publishing in 1972, specializing in easy-to-follow computer manuals.  By 1977 Osborne had over 40 titles in its catalog.  In 1979 he sold his company to McGraw Hill for a rumored $3 million, using the money to launch Osborne Computer.

In 1981, Adam Osborne introduced the first portable computer, the Osborne 1.  The computer weighed 23.5 pounds and cost $1,795, just over half the cost of a computer from other manufacturers with comparable features.  The computer ran the popular CP/M operating system and featured a full keyboard and a tiny 5″ built-in monochrome monitor.  The company shipped over 10,000 computers a month and was considered a huge success, earning $6 million in 1981 and by the next year into the $68 million range.

One version of the story says that Osborne Computers collapsed when Adam bragged to the media about two advanced computers the corporation was working on and destroyed the consumer demand for the Osborne 1.  The result was inventory glut and the company was forced to file bankruptcy.  But later research turned up that the machine Osborne had boasted of shipped and put the company back on track until a single executive built up massive debt trying to complete the assembly of older inventory.

Entry Filed under: Business, Think About It!